Singapore Businesses Lead Asia in Sustainability Drive Despite Funding Hurdles: HSBC Survey 2026

Singapore-based companies are at the forefront of Asia Pacific in transforming sustainability ambitions into concrete actions, reveals HSBC's latest Sustainability Pulse Survey.

Nearly all (99%) of these businesses perceive sustainability as a significant commercial opportunity.

Singapore's Investment Leadership

Impressively, 41% allocate over 10% of their capital expenditure to climate-related investments, far surpassing the regional average of 14%.

A robust 83% have made sustainability a core strategic priority, with 84% establishing or fully implementing transition plans.

Many use Singapore as a launchpad to expand green solutions across ASEAN, amplifying regional impact.

Persistent Funding Challenges

However, key barriers include limited budgets (42%), high implementation costs (38%), and financing availability (26%).

Businesses call for affordable financing, government incentives, and enhanced internal technical expertise to scale efforts.

"On the ground, we are seeing many businesses in Singapore embed sustainability into their core strategy," said Ellis Savva, Head of Sustainable Finance and Transition at HSBC Singapore.

The 2026 Singapore Budget bolsters this momentum through carbon pricing and decarbonization support, building on years of green policy history.

Globally, 85% of institutional investors favor companies with strong sustainability strategies for long-term capital, rising to 92% in Southeast and South Asia.

Looking ahead, 80% of Singapore firms plan to accelerate sustainability initiatives over the next three years, promising broader economic and environmental gains.